Lenders are shunning the remortgage market, and the situation is unlikely to change until 2011, according to housing intelligence outfit, Hometrack.The firm’s strategy, risk and economics director, Gary Styles, explains that lenders have been focusing their attention on house purchase lending, in some cases because they have government targets to hit.In addition, remortgaging activity has [...]
It's an interesting interpretation of the mortgage market but in my opinion somewhat off the mark.
Lenders are now starting to raise their Standard Variable Rates (Moneyfacts Jan 2010) so sticking with a lender and going onto the "revert to rate" when you come off your deal is becoming less and less attractive on a monthly basis.
This alone should increase activity in the remortgage market.
That said things are still very fragile and until we get to the end of quarter one I don't think anybody can say with any certainty what is going to happen in the next 6 to 12 months.
The recovery will hopefully continue slowly and steadily. However there is still the very real chance that Britain could experience a "double dip".
Quite agree - been expecting a double dip, and with the most recent GDP report suggesting 0.1% growth, we're only out of a recession on a vague technicality.
Remortgaging activity to resurface in 2011
